Hello Crypto Token Users,

In this blockchain era, cryptocurrency and tokens are the talk of the town all around the world. I believe that both cryptocurrency and tokens have gained huge popularity within a short period of time. The reason behind the instant attention is only because both were developed with the support of blockchain networks. It will ensure the safety, security and transparency of the crypto holders. In recent times, many industry owners and entrepreneurs have begun to develop tokens with the help of blockchain developers. In this blog, I will explain about tokens and their types.

What is Crypto Token?

Crypto token is an ownership representation of the digital assets like photos, data, and documents in the digital ecosystem. It can be created with the support of blockchain networks. They can be utilized as a means of exchange within their respective networks and also used for accessing various services. These tokens can be bought, sold, and traded just like coins. 

Cryptocurrency Vs Crypto Token

Most of them thought that both cryptocurrency and tokens are similar. But, there is a difference between them. Cryptocurrency is a digital currency which is used for making or receiving payments with the support of blockchain networks. Crypto tokens are digital assets, typically built on pre-existing blockchain platforms, with a variety of uses within particular blockchain ecosystems. Cryptocurrency will be created only on the respective blockchain network and tokens can be created on the preferred blockchain network.

Types of Top Crypto Tokens in the Market

Let us discuss the types of  top crypto tokens elaborately.

Security Tokens: Security tokens are digital assets that represent the ownership control of  assets or asset classes value into a token. In brief, security tokens are mostly used to tokenize traditional investments like stocks, bonds, and other securitized assets. 

More investors could be able to purchase and trade assets on international markets by using security tokens, which have the ability to democratize access to assets that are typically illiquid. An off-chain asset, such as a company, piece of equipment, real estate, or outstanding debt can also be represented by a token. In addition to that campaigns for fundraising could make use of security tokens. 

Highly recognized Security Tokens are Listed Below.

Blockchain Capital(BCAP)
Siacoin(Sc)
Props Token(PROPS)

Utility Tokens: Utility token is a specific kind of token that is used to gain access to certain goods or services within an blockchain ecosystem. Utility tokens don't grant any ownership or investment stake in a project like security tokens. Utility tokens are coming in a variety of forms and are frequently used to reward or penalize users for using the token to access the blockchain network.

After that, the ecosystem can make use of these digital assets for a number of functions, like covering transaction costs, gaining access to premium services, or taking part in governance and decision-making procedures.

Popular Utility Tokens:

Basic Attention Token(BAT)
Filecoint(FIL)
Cardano(ADA)

Governance Token: Governance token is a token that gives its owners the ability to take part in protocol governance. These tokens are mostly created with support  of the Ethereum blockchain network, allowing owners to vote in order to influence project decisions. 

Multiple models of governance are available. Generally, each token holder's voting power depends on the quantity of tokens they own. Therefore, a user has greater influence over the project's future the more governance tokens they hold.

High Fame Governance Token:

Uniswap(UNI)
Aave(AAVE)
Maker(MKR)

Non Fungible Token:

Non-fungible token (NFT) is an exclusive crypto token which is used to establish and verify ownership of digital assets. Cartoon Characters, music, movies, video clips, JPGs, postcards, sports trading cards, virtual real estate, and pets are all examples of content that uses NFTs. NFTs offer a blockchain-stored, secure record that has been authorized with a special identification code.

NFTs open up fresh opportunities for people to purchase and sell digital assets. They facilitate the digital exhibit of creative skills by artists and other content creators, and they offer a digital ledger for the safe valuation, purchase, and exchange of digital art.

Established NFT Tokens:

Axie Infinity
Sandbox
Efinity Token
Rarible

Transactional Tokens: On blockchain networks, transactional tokens act as a medium of exchange for enabling transactions. These have uses similar to those of traditional money, but they have extra advantages over fiat currencies.

These tokens can be easily sent to the respective wallet addresses. The advantage of transactional tokens is that they allow transactions to be completed without the need for conventional middlemen or centralized authorities like payment gateways or banks.

High Fame Transactional Tokens:

Litecoin
Steller
Alchemy pay

Specific Blockchain Platform Tokens: A platform token is a kind of token that is commonly used within the particular blockchain-based platform to speed up exchanges and communication. These tokens, which can be used to access a variety of decentralized services, features, and resources within the platform's ecosystem, are typically created and distributed by the ecosystem's developers.

Platform tokens have made it easier for decentralized applications (dApps) to use blockchain technology for a variety of purposes. It has a transactional capacity and protection as a result of the blockchain technology. Major industries like gaming, online marketplaces and global advertising are widely using these tokens. 

List of Blockchain Platform Tokens:

Chainlink
Sushiswap
Cronos

How to Create Crypto Tokens?

The basic crypto token development process is listed below.

1. Data Collection: First, we need to analyse the requirements of the client. Collect the data and document them properly for the development process.

2. Choose the Blockchain Network: Based on the token requirements, pick the suitable blockchain platform for the tokens. Major blockchain networks are Binance Smart chain, Ethereum etc.

3. Decide the Token Standard: In this stage, we have to decide the suitable token standards in the blockchain network. These standards will explain how cryptocurrency tokens operate as well as their features and functionalities. Therefore, picking the appropriate token standard is very important. There are different types of standards available like ERC 721, TRC20 and BEP 20 etc.

4. Choose the Token Type: As I mentioned earlier in this blog, a variety of tokens are available. We have to choose the type of token which we are going to create. Each tokens are unique depending on their nature, functions and usage etc.

5.Create Smart Contracts: Smart contracts will make the transaction process more effective and efficient. It is a digital agreement for the carrying out of preset tasks automatically. Create smart contract codes to integrate in the tokens   that are designed to define the functions of tokens like number of supply and other necessary elements.

6.Addition of Necessary features: This is the most essential stage, feed the advanced features in the tokens like security protocols, decentralized options, wallet and ensure interoperability.

7.Testing: Once the integration and development process is completed, the tokens will undergo a testing process to solve the issues and fix the bugs. 

8.Token Launch: After the completion of the testing stage, launch the created tokens in the market and conduct routine audits of the token's smart contracts to make sure they meet requirements. 

Why Prefer MetaDiac for Developing High-Standard Crypto Tokens?

MetaDiac is a trustworthy crypto token development company that can create highly advanced crypto tokens as per the requirements of the clients. We have specialized blockchain developers to develop different varieties of crypto tokens in a less amount of time. In this five years of journey, we have developed a lot of tokens based on various standards. Our tokens are integrated with a lot of mesmerizing features to enhance your industry sectors to reach new heights. We have received highly positive feedback about our tokens from clients all around the world. Our main objective is to satisfy the clients with our products and also encourage new entrepreneurs to tokenize their digital assets to elevate their business functions.